The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas has become “notorious for its ‘closed shop policy’” that prevents foreign attorneys practicing in this nation, a Cabinet Minister yesterday confirming this was driving away financial services business.

Hope Strachan, minister of financial services, told a Bahamas Institute of Financial Services (BIFS) conference that business was “not being referred to the Bahamas” because of this policy, and urged that the legal profession be liberalised to allow foreign specialists in.

Mrs Strachan said she and the industry had first-hand knowledge of these concerns, as they were given “unsolicited” by the Bahamas’ partners during a recent promotional trip.

“The Bahamas is notoriously recognised for its closed shop policy towards foreign lawyers and certain other industry professionals,” Mrs Strachan said. “On a recent industry-related trip, it was communicated that this continues to be an impediment as to why more business is not being referred to the Bahamas, despite our advanced legislation, our location and proximity to the US, our language, political stability, our cadre of well-educated and experienced professionals, and our reputation as a well-regulated and respected international financial centre.

“This was a common unsolicited theme from many of our friends and industry partners. The question is what should be done about it? Are we prepared to recognise the problem and do something to fix it?

“With so many young lawyers being called to the Bar each year as well as the migration of business going to our international and regional competitors in financial Services, I charge the legal profession to recognise that there are opportunities for substantial growth in the financial services sector if we are able to liberalise the sector. “

Mrs Strachan’s comments echo those of her predecessor, Ryan Pinder, who called for similar liberalisation during his time in office. And experienced financial services legal practitioners, such as Bryan Glinton, Brian Moree and Michael Paton, have also called for the Bahamas Bar Association to modify its policy and allow specialist foreign attorneys to practice and operate from this nation.

There has, though, been push back from other Bahamian attorneys, who argue that there are enough qualified practitioners in this nation to meet client needs.

Mrs Strachan, though, reiterated yesterday: “As we continue to further our efforts and to innovate for the future, one area identified as crucial to the growth of the financial services sector in the Bahamas is to allow international law firms to establish business operations in the Bahamas for the facilitation of cross-border business and arbitral matters.

“This will provide access to more jobs, more jobs and more jobs, while increasing the knowledge base of our legal professionals and also providing opportunity for the export of their knowledge to other jurisdictions. It will also provide substance to the jurisdiction as an international financial centre and a soon-to-be International arbitration centre. “

Mrs Strachan said that building on what BIFS has already established, the Government is developing a plan for the creation of a ‘Centre for Excellence’ in the Bahamas, with a focus on financial services.

“This will further solidify the Bahamas’ position as a premier financial services jurisdiction and the Government’s commitment to investing in human capital resources,” she added.

“The Bahamas was ideally selected among our Caribbean counterparts as the country in which to establish the Centre for Excellence along with Barbados, because of the progress we have already made in providing education in financial services as well as our infrastructure and technology.

“The Centre for Excellence will cater to not only Bahamians but other financial services professionals within the region. This allows for the ease of facilitating the Centre of Excellence. Paramount to its success will be the expertise which exists in BIFS.”